The recent success of Bitcoin Cash comes after the cancellation of the SegWit2x hard fork.
On November 12th, for a brief period, Bitcoin cash’s market cap crossed $40 billion, surpassing ethereum.
On November 12th, for a brief period Bitcoin Cash’s market cap crossed $40 billion, surpassing ethereum and stood at second-place in the market. According to figures from data firm CoinMarketCap, the price of Bitcoin Cash rocketed from under USD 1,000 on 11th November to more than USD 2,000, hitting a high of $2,446. Bitcoin Cash has emerged as the primary beneficiary from the cancellation of the SegWit2x hard fork.
The recent success of Bitcoin Cash comes after the cancellation of the SegWit2x hard fork because it encouraged businesses, miners, and investors that signed the original NYA or SegWit2x agreement to focus on the development of Bitcoin Cash and its market. As the market cap of Bitcoin Cash broke the $30 billion mark, Vitalik Buterin, the co-founder of Ethereum, congratulated Bitmain founder Jihan Wu and bitcoin angel investor Roger Ver, particularly in the South Korean market.
Notably, within a day it achieved more than a 100 percent increase in the value, as well as has seen the concentration of the trading volumes in the South Korean cryptocurrency exchange market. However, the short-term price trend of Bitcoin Cash has been called inorganic and unsustainable by the SegWit2x supporting businesses and their executives.
Xapo President Ted Rogers, said, “This Bitcoin Cash price move is far too fast to be real or sustainable. If it was built on fundamentals, earned over a period of time, it would have been ok. But there is no weight yet behind Bitcoin Cash: virtually no users or businesses, nothing outside of hash power & pumped price. Bitcoin Cash will correct very painfully soon.”
It is a known fact that miners are always attracted towards the more profitable blockchain, in order to get rewarded with higher returns for producing blocks of transactions. Due to this fact, speculation was rife that there may a sudden migration of miners from the original bitcoin blockchain to Bitcoin Cash which led to the South Korean cryptocurrency community to invest heavily in Bitcoin Cash.
It is quite obvious that if the investors in South Korea are lured to invest in Bitcoin Cash due to the movement of hash power, the short-term rise in the price of Bitcoin Cash will be unsustainable.
However, Bitcoin and Bitcoin Cash can co-exist, although the two have distinct visions. According to Andreas Antonopoulos, a bitcoin and security expert, Bitcoin and Bitcoin Cash can co-exist and serve different markets and user bases. Five of the largest cryptocurrencies in the market, that is, Bitcoin, Ethereum, Bitcoin Cash, Ripple, and Litecoin, all have contrasting philosophies, structures, and infrastructures.
As of now, the words of Xapo President Rogers that the price trend of Bitcoin Cash is simply not sustainable seems true as the price of Bitcoin Cash since achieving a new all-time high has fallen down to USD 1400 at the time of writing.
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